Moss Bros moves back to black

MENSWEAR group Moss Bros bounced back into the black at the halfway stage for the first time in five years, with profits of £700,000 comfortably ahead of analysts' expectations.

The interim dividend is restored, with a 0.5p-a-share payment, and there was more good news in the shape of an impressive 18% leap in like-for-like sales over the past nine weeks as the group reaps the benefits of its store refit programme.

Moss shares gained 3 1/2p to 89p. The £700,000 profit compares with a loss last time of £1.8m and chief executive Philip Mountford says there is still 'substantial potential' to be realised.

Sales for the six months to the end of July rose by just over 4% to £61m, with a like-for-like increase of 8%.

The trend towards more-formal dressing boosted suit sales and a growing preference for formal weddings also helped the hire side, pushing its share of the £60m-a-year market above 25%.

Refitted Moss stores are performing ahead of group targets, with sales uplifts of as much as 20%. The entire 100-shop chain will have been given the new look by the end of next year. The Cecil Gee and Hugo Boss chains also performed well.

Mountford said there had been no news from Kevin Stanford, the Karen Millen founder who recently emerged as controller of just over 28% of the shares.

Mountford said he has 'no idea' about Stanford's intentions. 'We have offered to meet him but have yet to hear back about a date, but he should be pretty pleased with his investment,' he added.